Chapter 8 – Alternative Value Propositions
8.1
A value proposition is often an umbrella concept under which the supporting assets and competences and
functional strategies and programs can be grouped.
8.2
Business strategies should offer a clear value proposition to customers and be supported by assets and
competencies and functional strategies and programs.
8.3
A business strategy should be challenged with respect to whether it contains a real and perceived value
proposition and whether that value proposition is relevant, ________ and ________.
8.4
Value should be determined by the firm and not by the customer.
8.5
In the business-to-business space, more companies are trying to move from being component suppliers to
being systems solution players because systems-based organizations will more likely to be more cost
effective.
8.6
It is believed that corporate social responsibility does not create shareholder value but rather just enhances
a brand image.
8.7
Firms that chose customer relationship as a value proposition just need to provide good functional benefits
of their product or service.
8.8
The six quality dimensions include: performance, conformance to specifications, features, customer
support, process quality, and _________.
8.9
In order for the quality option to be effective, a firm doesn’t need senior management commitment, because
the quality department is in charge of the total quality management program.
8.10
Most quality dimensions, such as performance, durability, reliability, and serviceability, are easy for buyers
to evaluate.
8.11
With the experience curve, the total cost of a product will decline at a predictable rate as experience in
building the product accumulates.
8.12
A signal of high quality for clothing is price.
8.13
Schlitz improved its market position with its aggressive low-cost strategy.
8.14
The experience curve is automatic and occurs over time.
8.15
A successful low cost strategy is usually multifaceted and supported by a cost-oriented culture.
8.16
Niche specialists are successful because their strategies are based on commitment to a single product line
or part of the market.
8.17
To obtain significant operational economies, it is useful to examine the value chain and look for inherently
high-cost components that could be eliminated or reduced.
8.18
CSR refers to customer social relationship management.
8.19
An experience curve strategy will usually enhance product innovation.
8.20
The low-cost strategic option consists of all of the approaches below except:
a. Scale economies
b. No-frills product/service
c. Delivery of superior customer service
d. Production/operations
e. Experience curve
8.21
Perceived value can be created without compromising the brand.